State Bank of Pakistan, while providing clarification, stated thatPakistan’s banking system is stable and the deposit system is secure. Thereis sufficient capital in Pakistan’s banking system, and the capability towithstand severe challenges in the banking sector has further improved.
In their explanatory statement, the State Bank mentioned that under arobust legal framework, the banking system is stable, and there has been anapproximately 125% increase in the benefits of the banking system. TheDeposit Protection Corporation (DPC) has also increased its protectionmeasures.
The State Bank stated that the DPC provides insurance coverage for depositsup to 500,000 rupees. In case of a bank’s failure, insured funds areimmediately available to depositors. After the regulatory process, theremaining deposit amounts can also be retrieved.
The Deputy Governor of the State Bank stated that only deposits up to fivehundred thousand rupees are legally protected in banks.
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During a briefing in the Senate Standing Committee on Finance under thechairmanship of Saleem Mandviwalla, it was explained that no additionalaccumulated amount beyond 500,000 rupees is secured, whether a bank goesbankrupt, collapses, or fails. Funds exceeding 500,000 rupees in an accountare not protected.
Deputy Governor of the State Bank further stated that 94% of accountholders with deposits up to 500,000 rupees, only 6% of account holders havea bank balance exceeding 500,000 rupees. Depositors with accounts up to500,000 rupees can claim compensation through the Deposit ProtectionCorporation.
